In the form of FCA delivery, the seller, ie the exporter company, arrange the inland transportation, when factory loading finish, the container loaded
FCA / Free Carrier Delivery to Carrier
Free Carrier, FCA Delivery Incoterm is the least risky transportation method after the delivery of ex works terms for vendor companies.Free Carrier, FCA
In the form of FCA delivery, the seller, ie the exporter company, arrange the inland transportation, when factory loading finish, the container loaded on truck and transport to the port. delivers the load at a point demanded by the buyer, the importer.For example, if the delivery term in the contract or in the proforma invoice is specified as "FCA .... city Port" The importer (buyer) company organize the seaway shipment and let exporter (seller) known about the shipment date. Buyer (importer) company also responsible ro manage the port operation with their carrier company and also responsible for port charges. The main difference between FOB and FCA, inland transportation belongs to buyer (exporter) company.
The exporter company is obliged to complete the container loading in factory and arrange the inland transportation to reach the container to the port. In the same time, exporter company also handle the customs clearence.
FCA, Free Carrier Price: How to Calculate
In calculating the FCA price, the vendor, ie the exporter, adds the profit share on the product's costs and add the internal transportation cost. In this way the FCA price is determined.FCA Price Calculation: Product cost + profit share + packaging + loading + internal shipping + customs costs
FCA : How it works
According to the FCA delivery type, the seller (exporter) company is responsible for loading the container in their company facility, carrying the container to port and handle the customs operations. All risks till the container reach to port, belong to the exporter (seller) company. It is also obliged to carry out customs procedures so customs expense will be paid by seller.FCA not only using in seaway deliveries. It could be use in also truck & train and airway deliveries. The main point is, buyer mention the delivery point as "FCA ...."
For example The seller company factory plant is in Guangzou, The buyer company want to get the goods at the Guangzou airport XYZ warehouse plants. so the delivery term mentioned on proforma or contracts as: "FCA Guangzou airport". Before the goods transport to the airport, the main freight company contact with the seller on behalf of the buyer company and gives the detailed adress. Its better to mention the detailed address on contract as "FCA X city Y delivery point"
If the main delivery is at any location other than the vendor's premises, for example: at a shipping terminal (railway, airport, port), the seller will be responsible for transporting the goods to the specified address. The unloading operations shall be carried out by the buyer at the transport terminal and the costs also at buyer's side.
Buyer and Seller's Responsibilities as FCA Delivery:
Seller (Exporter) responsibilities FCA delivery Term- The seller company responsible for loading goods in container and load the container on truck.
- The seller company also should manage the inland transportation and carrying the goods to the port or any otherspesific place which is mentioned by buyer company
- Customs clearence also handled by the seller company
Buyer (Importer) responsibilities Fca delivery Term
- The buyer's responsibilities start when container reach to the port
- Insurance; covering all risks till the goods reach to buyer's facilities
- The buyer company should handle the shipment costs
- Customs clearance at destination point (in buyer's contry)
- Inland transportation from destination port to buyer's facilities
Documents
The seller (exporter) company should prepare the documents including: invoce, packing list, certificate or origin or any other documents needed to handle the customs clearence in buyer's country. The seller send the document set by courier to buyer company.FCA Delivery Term: Seller & Buyer Responsibilities
| details FCA | Costs | Risks |
| Packaging | Seller ie exporter | Seller ie exporter |
| Internal shipment (to the harbour) | Seller ie exporter | Seller ie exporter |
| Customs clearence | Seller ie exporter | Seller ie exporter |
| Port Loading (handling charges) | Buyer ie importer | Buyer ie importer |
| Shipment (main shipment charges) | Buyer ie importer | Buyer ie importer |
| Insurance | Buyer ie importer | Buyer ie importer |
| Port Unloading at destination (handling) | Buyer ie importer | Buyer ie importer |
| Customs clearence at destination | Buyer ie importer | Buyer ie importer |
| Internal shipment at destination | Buyer ie importer | Buyer ie importer |
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